Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Save & Exit Exercise 6-3A Distinction between avoidable costs and cost behavior LO 6-1 Fanning Company makes fine jewelry that it sells to department stores

image text in transcribed
image text in transcribed
image text in transcribed
Save & Exit Exercise 6-3A Distinction between avoidable costs and cost behavior LO 6-1 Fanning Company makes fine jewelry that it sells to department stores throughout the United States. Fanning is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow. Bracelet A Bracelet B Cost of materials per unit $ 37 Cost of labor per unit 36 36 Advertising cost per year 9,600 6,900 Annual depreciation on existing equipment 5, 100 5,600 $ 42 Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product. Complete this question by entering your answers in the tabs below. Required A Required 6 Required Identify the fixed costs and determine the amount of fixed cost for each product. Fixed Costs Bracelet A Bracelet B Total fixed costs Required Required B > Exercise 6-3A Distinction between avoidable costs and cost behavior LO 6-1 Fanning Company makes fine jewelry that it sells to department stores throughout the United States. Fanning is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow: Cost of materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment Bracelet A 5 42 36 9,600 5, 100 Bracelet B $ 37 36 6,900 5,600 Required a. Identify the fixed costs and determine the amount of fixed cost for each product b. Identify the variable costs and determine the amount of variable cost per unit for each product c. Identify the avoidable costs and determine the amount of avoidable cost for each product Complete this question by entering your answers in the tabs below. Required A Required B Required Identify the variable costs and determine the amount of variable cost per unit for each product. Variable Costs Bracelet A Bracelet B Total variable costs per unit (Required A Required > Exercise 6-3A Distinction between avoidable costs and cost behavior LO 6-1 Fanning Company makes fine jewelry that it sells to department stores throughout the United States. Fanning is trying to decide which of the two bracelets to manufacture Cost data pertaining to the two choices follow. Cost of noterials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment Bracelet A Bracelet B $ 42 $ 37 36 36 9,680 6,900 5,100 5,600 Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product c. Identify the avoidable costs and determine the amount of avoidable cost for each product. Complete this question by entering your answers in the tabs below. Required A Required B Required Identify the avoidable costs and determine the amount of avoidable cost for each product. Avoidable Costs Bracelet A Bracelet B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Audit

Authors: Carolyn J. Cordery, David C. Hay

1st Edition

0367650622, 9780367650629

More Books

Students also viewed these Accounting questions

Question

Discuss brief psychodynamic psychotherapy approaches.

Answered: 1 week ago